(RTTNews) - Wednesday, aerospace tools and equipment supplier CAE Inc. (CAE,CAE.TO: News ), reported a decline in profit for the first quarter, hit primarily by restructuring charges. CAE said its financial results, however, showed resilience in the face of difficult market conditions with strong results from its military business offsetting lower performance in the civil business and expects the trend to continue to help it through the challenging aerospace cycle. The company also announced the retirement of its president and chief executive officer Robert Brown, effective September 30.

Brown, President and Chief Executive Officer, CAE said, "Our challenge during the first quarter was to successfully carry out a major global reorganization while maintaining the momentum of our business."

For the first quarter, the Montreal, Canada-based company's net earnings declined to C$27.2 million from C$47.3 million in the year-ago quarter. Earnings from continuing operations for the quarter decreased to C$27.2 million or C$0.11 per share from C$48.2 million or C$0.19 per share in the same quarter last year.

Results for the first quarter include a restructuring charge of C$27.2 million, primarily severance and other costs, including pension expenses.

Net earnings, excluding items, for the quarter were C$46.1 million or C$0.18 per share.

In the previous fourth quarter, CAE's net income increased to C$51.3 million or C$0.20 per share from C$35.6 million or C$0.14 per share last year.

Total revenue for the quarter under review decreased to C$383.0 million from C$392.1 million in the same quarter last year.
In the preceding fourth quarter, revenues increased to C$438.8 million from C$366.6 million in the comparable quarter last year.

Segment wise, Training & Services/Civil revenue for the first quarter rose 4% to C$114.7 million from C$110.2 million a year ago. Simulation Products/Civil revenues plunged 39% to C$83.1 million, compared to C$136.6 million a year ago. Revenue for Simulation Products/Military revenue was C$118.5 million, up 34% from C$88.4 million a year ago, while Training & Services/Military revenue advanced 17% year-over-year to C$66.7 million from C$56.9 million in the previous-year quarter.

Segment operating income for the quarter slid modestly to C$72.3 million from C$72.6 million in the same quarter last year.

Earnings before interest, depreciation, amortization and income taxes for the quarter dropped sharply to C$45.1 million or 11.8% of revenue from C$72.6 million or 18.5% of revenue last year.

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